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Shenmao TechnologyTPE:3305 -3.14%74 Gross Margin % is 13.39% as of Dec. 2025, which is 3% above its 10-year median of 12.95. GuruFocus rates TPE:3305 with a GF Score™ of 74/100 and a GF Value™ of NT$103.29 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,457 Hardware companies, Shenmao Technology ranks worse than 77.94% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Shenmao Technology had a gross margin of 13.39% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Shenmao Technology Gross Margin % Related Terms
Shenmao Technology Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shenmao Technology's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronic Components subindustry, Shenmao Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shenmao Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shenmao Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenmao Technology's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Shenmao Technology (TPE:3305) has a Gross Margin % of 13.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenmao Technology and its competitors. This is near median its historical median of 12.95. Over the past decade, Shenmao Technology's Gross Margin % has ranged from 10.20 to 16.51. According to the industry distribution chart, Shenmao Technology ranks #1915 out of 2457 companies in the Hardware industry, placing it in the top 77.9%.
Is Shenmao Technology's Gross Margin % too high?
Shenmao Technology's current Gross Margin % of 13.39% is near median its 10-year median of 12.95. Over the past 10 years, this metric has ranged from a low of 10.20 to a high of 16.51. The Hardware industry median Gross Margin % is 24.54. Shenmao Technology's value of 13.39% is 45.4% below this industry median. Based on the distribution chart, Shenmao Technology ranks #1915 out of 2457 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Shenmao Technology has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shenmao Technology's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Shenmao Technology ranks #1915 out of 2457 companies for Gross Margin %. This places Shenmao Technology in the lower half of its industry. The industry median Gross Margin % is 24.54. Shenmao Technology's value of 13.39% is 45.4% below this benchmark. Historically, Shenmao Technology's own Gross Margin % has ranged from 10.20 to 16.51 over the past decade. While the company's 10-year median is 12.95 vs. the industry median of 24.54, Shenmao Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.54, based on 2,457 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shenmao Technology's current Gross Margin % of 13.39% is 45.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenmao Technology and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenmao Technology's current Gross Margin % is 13.39%, which is near median its own 10-year median of 12.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenmao Technology stock overvalued right now?
Based on GuruFocus' analysis, Shenmao Technology (TPE:3305) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$103.29, compared to a current price of NT$123.50 — trading 19.6% above its estimated fair value. The current Gross Margin % is 13.39%, which is near median its 10-year median of 12.95 and 45.4% below the Hardware industry median of 24.54. Shenmao Technology's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Shenmao Technology (TPE:3305), the current Gross Margin % is 13.39% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shenmao Technology (TPE:3305) Overvalued in 2026?
Based on GuruFocus' analysis, Shenmao Technology stock appears to be overvalued.
The current stock price of NT$123.50 is trading 19.6% above its estimated GF Value™ of NT$103.29.
GuruFocus considers Shenmao Technology to be Modestly Overvalued.
Key valuation signals for TPE:3305:
Gross Margin %: 13.39% (near median its 10-year median of 12.95)
GF Value™: NT$103.29 vs. price of NT$123.50 (19.6% above fair value)
Industry Position: 45.4% below the Hardware median (#1915 of 2457)
No single metric tells the full story. See the TPE:3305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenmao Technology Inc and its subsidiaries manufacture and sell solder wire, solder bar, BGA solder ball, and solder paste. The company has its geographic presence in Taiwan, Mainland China, Malaysia, and other countries. Its products are SMT Assembly, Semiconductor Packaging, Wave Solder Assembly, Liquid Flux, Solder Preform and Ribbon, and PV Ribbon.
74GF Score
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